2008 (3) TMI 520 - AT - Central Excise

Issues Involved:
1. Adjudication of 22 show cause notices.
2. Previous adjudications and appeals regarding show cause notices.
3. Classification and valuation of sheet cuttings of HR Coils and sheets.
4. Sustainability of demands already set aside by higher authorities.
5. Reversal of Modvat credit on inputs not utilized in final products.
6. Imposition of penalties.

Issue-wise Detailed Analysis:

1. Adjudication of 22 Show Cause Notices:
The appellant filed an appeal against the adjudication order confirming the demand in respect of 22 show cause notices. The appellant contended that some of these show cause notices had already been adjudicated, and the demands were set aside by higher authorities, including the Commissioner (Appeals) and the Hon'ble Supreme Court.

2. Previous Adjudications and Appeals Regarding Show Cause Notices:
- Show Cause Notices 1 to 5: The demands were already adjudicated and set aside by the Commissioner (Appeals) vide Order-in-Appeal No. 319/98, dated 19-5-98. The Revenue did not file any appeals against these orders, making the present demands unsustainable.
- Show Cause Notices 8 and 9: The demands were set aside by the Commissioner (Appeals) and upheld by the Tribunal and the Hon'ble Supreme Court (CA Nos. 4371-72/2003, dated 23-3-2006). Therefore, the current demands in respect of these notices are not sustainable.
- Show Cause Notices 19 and 20: The Hon'ble Supreme Court ruled in favor of the appellant, leading to refund claims being allowed by the Adjudicating Authority. Subsequent appeals by the Revenue were dismissed, and the demands were set aside by the Tribunal and upheld by the Hon'ble Supreme Court. Hence, these demands are not sustainable.

3. Classification and Valuation of Sheet Cuttings of HR Coils and Sheets:
The Revenue contended that, as per the Hon'ble Supreme Court decision, the sheet cuttings of HR Coils and sheets should be classified under the tariff heading as shapes and sections, and their value should not be less than the value of the inputs on which credit had been availed. However, this contention was not upheld in the final judgment.

4. Sustainability of Demands Already Set Aside by Higher Authorities:
The Tribunal found that the demands raised in the show cause notices, which were already adjudicated and set aside by higher authorities, including the Hon'ble Supreme Court, were not sustainable. The demands were consequently set aside.

5. Reversal of Modvat Credit on Inputs Not Utilized in Final Products:
The Commissioner (Appeals) upheld the Adjudicating Authority's order regarding the reversal of Modvat credit on inputs not utilized in final products. However, the Tribunal later set aside the demand of Cenvat credit on slitting of HR Coils under Rule 57F(1), classifying such slitting as shapes under 72.16. The Hon'ble Supreme Court upheld this decision.

6. Imposition of Penalties:
Considering the facts of the case, the Tribunal found that it was not a case for the imposition of penalties. Therefore, the penalty was set aside, and the appeal was allowed as indicated above.

Conclusion:
The Tribunal set aside the demands raised in the show cause notices that had already been adjudicated and upheld by higher authorities, including the Hon'ble Supreme Court. The classification and valuation contentions by the Revenue were not upheld, and the reversal of Modvat credit on inputs not utilized in final products was addressed as per the Tribunal's previous orders. The imposition of penalties was also set aside, and the appeal was allowed.

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